SEATTLE — King County and Seattle City Council members convened a joint meeting June 20 to hear business leaders, port operators, tourism officials and regional economists describe early signs that recent federal tariff actions and broader federal policy uncertainty are weighing on the Puget Sound economy and could erode local tax revenue.

The session brought together panelists from Greater Seattle Partners, the Seattle Southside Regional Tourism Authority, the Northwest Seaport Alliance, the Agricultural Transportation Coalition, several small-business owners and the chief economists for King County and the City of Seattle to review short-term impacts and possible next steps.

Panelists said the region is already seeing reduced container volumes, higher operating costs and a chill in some investment decisions. "Uncertainty is the enemy of investment," Brian Surratt, president and CEO of Greater Seattle Partners, told the councils. Surratt said some international investors remain interested in the region but are watching U.S. policy and often adopt a two-year horizon before committing.

Why it matters: The Seattle metro area and King County are highly trade-dependent. Local officials said declines in port activity, tourism and business investment would quickly erode sales-tax and lodging-tax revenue that fund local services.

Business and small-retailer accounts: Panelists from the retail and grocery sectors said tariffs and tariff-driven price swings have hit them immediately. "As soon as the tariffs were announced, we saw a panic buying and then a price increase almost immediately," said David Tran, owner of Lamb's Seafood Market in the International District, describing rapid supplier price hikes and smaller customer basket sizes. Leechine (Lacey) Tran, an owner/manager of an Asian grocery and importer on the panel, said many grocery products are sourced from Asia and the supply interruption and rising costs forced stores to scale back equipment replacement and planned investments.

Ports and freight: Steve Balaski, director of business development for the Northwest Seaport Alliance, said May volumes at the Alliance showed sharp declines: loaded imports were down roughly 30% from April and were down about 21% versus May of last year; exports were down about 30% from the prior month and down about 11% year over year. Balaski and Peter Friedman, executive director of the Agricultural Transportation Coalition, warned that steamship lines and exporters monitor local operating conditions and may shift service if terminals become less efficient or more costly. "If it becomes more difficult, that steamship line will say LA, Long Beach, Vancouver, Prince Rupert — we'll go there," Friedman said.

Tourism and hospitality: Mark Everton, CEO of the Seattle Southside Regional Tourism Authority, said King County has roughly 43,000 hotel rooms — about 41% of the state's supply — and that occupancy and average rate growth are lagging operating costs. He cited rising labor costs and insurance and said many hotels are postponing renovations because furniture, fixtures and equipment (FF&E) often come from countries subject to tariffs.

Economic data and outlook: Elizabeth Martin Lahar, chief economist with the King County Office of Economic and Financial Analysis, and Director Duras of Seattle's Office of Economic and Revenue Forecasts (presenting regional analysis) described several early indicators local governments are watching: taxable sales that came in weak in 2024 (King County taxable sales were down 0.5% for the year), construction-sector taxable sales that have declined sharply (around a 13% year-over-year decline in recent months), and limited employment growth in the first four months of 2025. Lahar also noted the lagged nature of trade data and that some importers "front-loaded" purchases in response to tariff threats, temporarily masking later drops.

Panelists gave concrete examples: Greater Seattle Partners reported that container lifts at the two ports were down about 33% on some measures and the Port of Seattle/Port of Tacoma container lifts were down 42% year over year for a May metric Surratt cited. The Northwest Seaport Alliance provided a firm-level example of a transload operator that reduced shifts by roughly half and said more than 100 employees were affected.

Equity and community impacts: Council members and panelists flagged immigration enforcement and federal policy uncertainty as non-tariff but economically significant drivers. Several speakers said fear of enforcement actions is suppressing attendance at community events, undercutting vendors and discouraging participation in the workforce. Councilmember Teresa Mosqueda and others stressed that immigration enforcement and deportation actions can compound supply- and labor-chain problems and depress consumer spending in immigrant-owned small businesses.

Next steps and local actions: Council members proposed continuing the joint dialogue and building a broader regional coalition with cities, business and labor to press for clearer federal policy and to coordinate local responses. Surratt and other panelists urged local leaders to signal stability to investors; economists recommended continued monitoring of taxable sales, port volumes, hotel occupancy and employment as near-term warning signs. Chair Balducci and Seattle Councilmember Alexis Rink said staff will circulate follow-up data and work on a shared set of "guiding principles" for regional advocacy.

What they did not do: The joint meeting produced no formal votes or regulations. County and city staff were asked to share data updates and explore a coordinated approach to state and federal advocacy.

Outlook: Panelists emphasized that the full economic effects — including possible retaliatory tariffs and the duration of any tariff measures — remain uncertain. Several warned that the shock could linger even if federal policy shifts, and urged local governments to plan for lower-than-expected revenue and to prioritize services that support small businesses, tourism and freight-dependent jobs.